Traffic overload was one of the big themes of the 2011 Mobile World Congress.
The growing range of 3G-enabled devices, falling price points of smartphones, and increasing number of Internet enabled tablets will continue to drive growth in mobile broadband data volumes. However, operators cannot afford to let traffic flood their networks while prices continue to fall.
The solution is to control bandwidth, but MNOs must ensure that the process they use to do this is perceived to be transparent and fair to their customers. This can be achieved by expanding policy management and controls, and combining them with the customer data held in business support systems (BSS), which will enable operators to develop charging plans based on multiple parameters. The outcome will provide operators with a sustainable revenue stream, improved customer service, and the ability to shape traffic on their mobile broadband networks.
Mobile network congestion demands a response
As the number of connected devices increases, mobile broadband data volumes are rising exponentially, and it is widely expected that within five years more than half of all traffic will be video. The surge in data traffic on mobile broadband networks is placing a heavy burden on operators’ limited network capacity and spectrum. In this environment, MNOs need to find ways to manage their traffic load while charging for services, personalize an assured customer experience, and increase their agility and response times.
One of the tools that operators can use to combat network congestion is policy management. Policy management is most often applied at a network level using quota tracking and management products that manage congestion and optimize the routing of traffic. In the last 18 months, there has been significant activity in the policy space focusing on a next-generation implementation for policy and charging control and of the policy and charging rule function (PCRF).
The next-generation of policy management tools
The “next-generation approach” to policy management is to apply the PCRF alongside customer data management tools in the BSS. By combining policy management and enforcement with customer data in the BSS, MNOs can draw on a broader set of information to accommodate dynamic charging principles for a variety of use cases.
Combining information about network and service status with customer data stored in the BSS provides a granular customer management tool that can be used to generate incremental revenues through differentiated use cases. Operators can then offer personalized tariff plans that allow customers to better manage their costs and access to specific services. For example, enterprises may wish to limit their employee’s use of corporate mobile phones outside of working hours or provide spend limits that require authorization to breach.
While there are clear benefits to the concept of “smarter charging”, MNOs must ensure that they consider the customer when designing segmented tariff plans and new use cases. The increased transparency these tools can provide to the customer will be welcome, but if too much complexity is introduced into tariffs and account management customers may well switch off.